In the self-service operation in Mexico, sales showed a growth of 19.7%, reaching 28,795 million pesos. Same store sales increased 12.2% compared to the previous year, while five stores were opened in the quarter and 68 in the last 12 months, including those acquired in the Arteliwhich represented a 4.2% growth in the sales floor area.
However, the largest sales volume came from USA, where same-dollar store sales grew 7.9% driven by an increase in the average ticket and the number of customers. In pesos, the result was impacted by a negative exchange rate effect of 9.9%; with this, to total stores the result decreased 2.9% against the previous year when accounting for 35,319 million pesos.
“In Mexico, as we have done in the last two years, in the quarter we grew in sales above the market, practically in all the regions where we have a presence. In the United States, our customer value focus has allowed us to increase traffic in stores year after year, with which we obtained sales growth in all formats,” said Antonio Chedraui, the company’s CEO, quoted in the report. .
In the real estate division, revenue grew 12.6% against the same period last year, and registered 312 million pesos, exceeding the level of revenue obtained before the pandemic. During the last 12 months, 2,803 square meters of rentable area were added, representing a growth of 0.7%.
At the end of March 2023, Chedraui registered a net debt of 3,869 million pesos made up of 11,370 million pesos long-term and 7,501 million pesos in cash and temporary investments. Its main sources of liquidity are cash flow from the operation and bank loans. Likewise, its cash requirements have historically been used for opening stores and repaying loans.
The objectives set
Going forward, the company is very clear about its projections. By 2023, it seeks to achieve growth of total sales between 15 and 16% due to the opening of new stores and the consolidation of the acquisition of Arteli.
By 2023, Chedraui projects growth in same-store sales in Mexico from 7% to 8%, and for USA estimates a 5% increase for both Smart & Final and the Hispanic division. To total stores, expect growth in dollars of 5.5%.
The expansion plan in Mexico includes the opening of seven Chedraui stores, three Super Chedraui and 50 Superswhile in the United States the opening of three Smart & Ultimate and an El Súper for a total of four starts.
By the end of the year, the goal is to achieve a net bank debt to operating cash flow ratio close to zero, given the company’s projected cash flow generation.
Currently, the group is the second largest self-service competitor in the country. In Mexico it has 204 Chedraui stores, 75 Super Chedraui stores, eight Super Che stores, 85 Supercito, 36 Arteli and 17 Smart & Final, while in the United States it operates 64 El Super stores, 59 Fiesta stores and 253 Smart & Final. In addition, the real estate division, which is in charge of marketing premises with third parties for sale or rent, has a leasable area of 428,655 square meters.